Tags: EMC | data | storage | stocks | investing

EMC Leads Data into the Cloud

By    |   Wednesday, 25 May 2011 02:10 PM

The proliferation of new forms of information technology has helped send the need for data storage soaring higher. That puts EMC Corp. (EMC) in an enviable position as the top provider of corporate data storage equipment.

EMC is a one-stop shop offering, hardware, software, and services involved in data storage. It originally concentrated on hardware but now has strong offerings in software and services, including via its software subsidiary VMware (VMW).

As businesses computerize more of their information demand for EMC’s services should rise. Experts predict enterprise storage will expand by more than 40 percent annually for years.

Big companies are updating their data storage after holding off during the recession. They also are adopting “cloud” computing systems to take the place of older data storage hardware. Companies can use a central area on the Internet (thus the “cloud”) to store their data rather than on multiple computer systems they have to manage on their own.

Technology research firm Gartner projects that global spending on cloud-related services may surge more than twofold to $148.8 billion in 2014 from $58.6 billion in 2009.

Best in class

In January, EMC introduced more than 40 new storage products and technologies to satisfy that corporate demand. So it’s a fine time to consider EMC shares.

The company’s profit jumped 28 percent to $477.1 million in the first quarter from $372.7 million, a year earlier. Revenue gained 18 percent to $4.6 billion, beating analysts’ estimates.

“EMC delivered solid results in a difficult period — e.g., Japan, federal budget constraints, rising inflation, etc. — and showed investors why it has a winning solution for next-generation data center architecture,” analysts at Gleacher & Co. wrote after the earnings report.

“In fact, if we were forced to only recommend one name for enterprise infrastructure exposure for the next three years, EMC would be our choice. … (It) remains the single best positioned enterprise infrastructure company to service the cloud.”

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
Companies
The proliferation of new forms of information technology has helped send the need for data storage soaring higher. That puts EMC Corp. (EMC) in an enviable position as the top provider of corporate data storage equipment. EMC is a one-stop shop offering, hardware,...
EMC,data,storage,stocks,investing
320
2011-10-25
Wednesday, 25 May 2011 02:10 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved